If you feel the need to escape the stress of low credit scores, you will find there are several simple and safe ways to raise your credit score. As you might have already guessed, your credit score is an extremely powerful number. It sets the stage for whether or not you will be approved for a new car loan, rent an apartment, buy a house, or receive a store credit card. Lenders look to you credit score to determine your credit worthiness. In essence, the higher you credit score the better your chances of being approved for credit and obtaining the best interest rates on loans. Here are three ways to give a quick boost to your current credit score.
1. Fix Errors On Your Report
Is your credit report error free? Surprisingly enough, many consumers find error after error on their credit reports. This is especially true when you and another individual share the same same often resulting in the credit reporting agencies mixing up activity. Since payment history makes up 35 percent of your credit score, ensuring there are no errors is vital to maintaining a good FICO score. Go over your credit report with a fine-toothed comb to make sure that the items that appear on it actually belong to you and have been reported correctly.
2. Don’t Apply For Too Much Credit
How many credit cards do you have? In order to keep your FICO score high, put a limit on the amount of credit cards you sign up for. Each time you fill out an application to open up a new line of credit, lenders may see you as desperate for credit. Do not apply for credit or loans that you simply don’t need. In the end, this could do more harm than good.
3. Keep Your Credit Utilization Rate Low
Are you buried under mountains of debt? The less debt you accumulate, the better. A common misconception is that carrying debt on your credit cards will help you to maintain a good credit score. But the truth of the matter is the less credit you use, the better off you are. Make it your mission to use less than 10 percent of your total credit limit. Keep in mind that not only is your payment history sent to credit reporting agencies but your balance as well.
Now, more than ever, it is important to protect you credit and maintain a high credit score. Because lenders and credit card issuers are looking closely at your credit score, you must do whatever it takes to keep your FICO score from dipping same. Remember, the lower your credit score, the less likely you are to be approved for any time of loan. There’s no time like the present to go over your credit report and used the tips listed here to raise your score.